M&A
Allcargo takes 65% stake in JV with Swedish logistics firm Nordicon for $28-M
BSE Disclosure Economics Times
Allcargo Belgium NV, a wholly owned subsidiary of Mumbai-based, publicly listed Allcargo Logistics Ltd, has formed a joint venture with logistics-focused Nordicon Group. Allcargo will hold a 65% stake in the JV, ECU Worldwide (Nordicon) AB, while the balance 35% will be held by the owners of Nordicon. ECU Worldwide will hold a 100% stake in Nordicon AS and Nordicon DK. Allcargo will pay SEK 243.1 million (about USD 28 million) in cash for the stake. With the strategic investment, ECU Worldwide is expected to be a market leader with a near 40% market share of the less-than-container-load (LCL) business in the Nordic region (Sweden, Norway, Finland and Denmark). The business being acquired under the JV had recorded a turnover of EUR 38.6 million in CY2020. Meanwhile, Allcargo has dropped plans to bid for Indian tate-run container company Concor.
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